Bill Text: NY A10336 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes that no corporation shall have a membership comprised of fewer than three persons, except for a corporation that has no members; may have a corporation, joint-stock association, unincorporated association or partnership as a sole member, if it is owned or controlled by no fewer than three persons.

Spectrum: Slight Partisan Bill (Democrat 8-4)

Status: (Passed) 2018-12-21 - signed chap.411 [A10336 Detail]

Download: New_York-2017-A10336-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          10336
                   IN ASSEMBLY
                                     April 10, 2018
                                       ___________
        Introduced by M. of A. PAULIN, COOK, MONTESANO, BARRON, GUNTHER, JAFFEE,
          MAGNARELLI,  RIVERA,  ERRIGO -- Multi-Sponsored by -- M. of A. CROUCH,
          LAWRENCE -- read once and referred to the Committee  on  Corporations,
          Authorities and Commissions
        AN  ACT  to  amend  the  not-for-profit  corporation law, in relation to
          requiring that no corporation have a membership of  fewer  than  three
          persons
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (a) of section 601 of the  not-for-profit  corpo-
     2  ration law, as amended by chapter 549 of the laws of 2013, is amended to
     3  read as follows:
     4    (a)  A  corporation  shall have one or more classes of members, or, in
     5  the case of a charitable corporation, may have no members, in which case
     6  any such provision for classes of members or for no members shall be set
     7  forth in the certificate of incorporation or the by-laws.  Corporations,
     8  joint-stock  associations, unincorporated associations and partnerships,
     9  as well as any other person without limitation, may be members, provided
    10  however, that effective July first, two  thousand  nineteen,  no  corpo-
    11  ration shall have a membership comprised of fewer than three persons or,
    12  if  the  sole member, a corporation, joint-stock association, unincorpo-
    13  rated association and partnership owned  or  controlled  by  fewer  than
    14  three persons.
    15    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15274-01-8